Joe Lieber

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[DKNG, FLUT, CZR, MGM] Sports Betting in the Crosshairs?

By Joe Lieber Published on December 17, 2024 PDF

We don’t believe today’s Senate Judiciary Committee hearing entitled “America’s High-Stakes Bet on Legalized Sports Gambling” does little to move the needle on federal legislation, despite most senators being critical of the industry. In fact, we believe it is unlikely that any material federal anti-sport gambling legislation is likely to pass over the next two years and probably longer.

Simply put, we don’t see such legislation as a priority for Congress over the next two years. Maybe meaningful, the incoming Senate Judiciary Committee Chairman Charles Grassley (R-IA) wasn’t at the hearing this morning. Senator Lindsay Graham (R-SC), who is currently the ranking member on the committee, also didn’t participate.

Only four of the 10 Republicans on the committee participated and two of those essential spent their time questioning NCAA president Charlie Baker about transgender athletes in college sports. On the Democratic side, six of the 11 members didn’t show up.

Despite the low likelihood that the incoming Congress passes federal legislation limiting sport gambling, headline risks remain. We fully expect Senator Richard Blumenthal (D-CT) and Representative Paul Tonko (R-NY) to reintroduce the SAFE Bet Act, which:

Bans online sport gambling companies from advertising during live sporting events.

Prohibits companies from encouraging gambling, such as free bets and better odds. Requires all states to gain approval from the Department of Justices to sports betting.

Sets limits on the amount bettors can wage and how often they can place bets.

Noteworthy is that there are no co-sponsors for either bill in the House or the Senate.

Action on sports betting is likely to be on the state level for the time being.

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